“However, Multotec’s sustainability is based on its consumables component and this requires a solid infrastructure to ensure that the requisite service levels, including process support, are available within each region where we operate. We have a policy on consumable equipment to build up a local infrastructure which can offer local knowledge and expertise coupled with responsive service levels.

“The consumables market is definitely a more localised business and we have a greater competitive base with which to contend as there are both small and medium local companies as well as the multi-nationals in the market,” Holtz says.

Holtz attributes the company’s success to its strategy to specialise in consumables. “It is the kind of business where you need relationships, a footprint in the region, and a fast response to customer demand linked to a sound understanding of their process requirements. This means that it all revolves around the service issue, which naturally is superior when your efforts are concentrated on a specific focal point, in this case consumables.”

Holtz says that the starting point for consumables from a plant manager’s perspective is the difference between opex and capex. “Another way of looking at it is that consumables are generally replaced in a cycle of anywhere from three months to three years.

“Within the consumable business model there are different criteria in terms of getting the product into the plant. Our route to plant is generally through capital projects and that is normally via the mining houses, the EPCM contractor or through OEMs, or even as an OEM in our own right. The route chosen, of course, would depend on the actual piece of equipment selected,” Holtz says.

Global benchmarking
Holtz claims that by internationalising the business, the positive spin off is that it has allowed the company to benchmark itself against competitors that do not operate in the South African environment. “This has allowed us to keep abreast of international best practice and trends, and we are able to offer this type of technology to the local market.

“It is very humbling for us to go out there as a small player and prove ourselves without having an established reputation.” He adds that the consumable business is about long term growth. “We could never just walk in and land huge contracts and then claim to ‘have it made’. It’s about being in it for the long haul and then looking after that business we have built up.

“This sustainable growth is not easy to replicate in other areas and regions so we need to stay focused and driven. This requires a long term approach with the associated establishment of the necessary infrastructure to support the customer. The entry barrier into this market is high but if successful, it is very rewarding.”

Commenting on the Group’s capital equipment portfolio, Holtz says he believes capital equipment has to key into the process flow in a plant, so it must be correctly specified. “If this is not done correctly there will be issues, and for this reason we have the necessary process knowledge in-house to provide advice on specifying and fitting the equipment into the plant. At the end of the day technology is about people. It is a finely balanced combination of intellectual property and the ability to take the technology and integrate it into processes and provide workable solutions. Multotec is known for its extensive process knowledge and the research and development work it undertakes on a continuous basis, which naturally overflows into the consumable component as well.”

Combination of service levels – product portfolio
Holtz claims that the company has no real single competitor. “The reason I say this is that we compete with various companies who have varying product portfolios. However, Multotec is in an interesting position in the market where our competitors for some product are also our customers for another product and this is as a direct result of our diverse product range.

“Our product portfolio allows us to offer a level of service that most other players do not have and cannot economically justify. This is an integral part of our infrastructure and is in line with our strategy to offer the plant personnel on-site advice and support on our own equipment as well as on third party equipment.

“Most of our people are either metallurgists, engineers, or people with extensive plant experience. We have always maintained that our people are important, so we face the challenge with our 1 400 employees of maintaining our ethos of being part of a family, while at the same time acknowledging that we have grown into a much larger organisation. Fortunately, our people know that they are part of a well oiled structure that can deliver to the customer and this affords a level of trust to customers as well,” Holtz says.

Holtz reiterates that a major strength of the Group is its diverse consumable portfolio. “We can provide screen panels, flotation components, mill liners, cyclone components, wear resistant linings and other products.”

Loyalty to territory
Holtz acknowledges that the Group’s success, while hinged on its customer focus and service levels, is also in part due to the sustained increase in demand for resources. “This has opened the door for a number of other competitors to enter this market but we have a fairly unique business model and Africa has been good to us.”

Holtz points specifically to resources in West Africa and the Copper Belt, amongst others, where the demand for the company’s products has mushroomed. “Last year, 40% of our turnover was exported from South Africa. However, only 15% of this leaves the African continent. It is necessary to establish the infrastructure in various regions and make sure that the infrastructure keeps pace with the opportunities in those areas and although Africa remains our oyster, we are also extending our footprint into South America and Australasia.

“With the global capacity shortfall in certain areas we have experienced pressure in retaining our lead times. What is important is that while capacity has to be built, a realistic approach is also required to ensure the sustainability of the business. Where necessary and economically justifiable, additional production capacity is being created and international sourcing options are being considered. Capacity has recently been extended in both the rubber and wear lining manufacturing facilities.

“We have a low attrition rate with our people, and as a rule experience remains within the Group. We are constantly attracting new people into the Group as a result of our growth and, because of our raised profile and our commitment to remain responsive, our people are also being headhunted by others. This is testament to the success of our business model.

“Doing business with Multotec is about trying to retain the connection to people and this is achieved through building relationships between the people in our Group as well as with our customers. We are a values driven group – trustworthiness, accountability, humility and customer sovereignty are part of our inherent ethos. All of our people understand and recognise that we are here because of the customer and they all buy into this value,” Holtz concludes.

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